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I sold a house and carried the note I reported interest

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I sold a house...

I sold a house and carried the note I reported interest income for five years now they refinanced how do I report receiving the balance of the loan.

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Sold a home under owner financing and reporting interest income now the buyers refinanced and paid off the loan how do I report on my tax return the loan balanced

Submitted: 1 month ago.Category: Tax
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3/8/2018
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 1 month ago
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,058
Experience: Adjunct Professor
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Hey! I'm Carter, I'm a CPA and can help you out with this.

There is nothing needed to be reported for receiving the principal of the loan.

If you were using the installment method to record the gain, then you'd have to bring in the rest of the gain. If you didn't have a taxable gain, then this is not applicable.

Let me know if you need anything else. If not, please leave a rating. Thanks!

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Customer reply replied 1 month ago
I claimed the interest on Schedule B- Interest income. So, the funds (loan balance) I received now are not reported, correct?
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 1 month ago

Yup. Thats the correct way to do it. The loan balance is not reported.

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Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 1 month ago

Hey! Just wanted to follow up to see if you needed anything else. If not, please leave a rating so I can get credit for helping you out. Thanks!

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